Aerospace Group:

RAND: Restarting F-22 Production After A Stop Likely Would Cost $450 Million

DDN

Friday, July 11th, 2008

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Closing Lockheed Martin's [LMT] F-22 Raptor production line outright and then reactivating the dormant line at a later time would cost the Air Force between $225 million and $720 million, with the most likely figure close to $450 million, RAND estimates in new study conducted on behalf of the service. The cost estimates of this shutdown-restart scenario vary due to factors such as how much funding would actually be required to preserve tooling, retain the workforce, and requalify parts suppliers,…

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